Opening new (business) bank account before applying for mortgage?

Scampy

Hi,

My other half and I are hoping to apply for a mortgage in the next 3-6 months so are looking to get all our finances in order. I know that applying for any new credit before a mortgage is generally not a good idea but was hoping for a bit of advice.

We are in a partnership which is currently running through a personal bank account. I realise this is not ideal and we want to make sure everything is completely separate so are considering opening a basic business bank account. I am however put off that this might be the worst thing for our credit rating at this time?

We do not particularly want any overdraft facility as the business is funded through our own money, and we already have a credit card which is used for business (and paid off each month).

Our options are to either carry on as we are using the personal account (although I assume the bank may raise issue with this in the long run, especially if they are looking at our finances for mortgage purposes) or open a joint business bank account and hope this doesn't affect our credit score too negatively.

I have had a look at the bank account terms and can't see anything that specifically excludes business use, but they do refer to separate terms for business accounts.

Any advice on the best way to go would be much appreciated.

Pixie5740

When I opened my business bank account it didn't seem to have any impact on my person credit file. Like yourself I don't have an overdraft or any other kind of borrowing for my business.